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IRA Bankruptcy Exempt Amount Increases

(March 14, 2016) When the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was enacted the first $1 million of IRA assets (Traditional and Roth) were protected (or exempt) in bankruptcy. Upon review of the consumer price index every three years, this amount may be increased. As a result, as of April 1, 2016, the bankruptcy exemption amount for IRAs has increased from $1,245,475 (which was set in April 2013) to $1,283,025. This exemption amount is exclusive of any rollover dollars originating from qualified retirement plans, SEPs and SIMPLE as rollover assets are given unlimited protection in bankruptcy proceedings.